Does low-carbon supply chain management reduce greenhouse gas emissions more effectively than existing environmental initiatives? An empirical analysis of Japanese manufacturing firms

Abstract

The focus of corporate environmental initiatives to reduce greenhouse gas (GHG) emissions has shifted from individual firms to supply chains, and to so-called low-carbon supply chain management (LCSCM). Because LCSCM is a more advanced environmental initiative than existing initiatives, this study empirically analyzes the influence of manufacturing firms’ LCSCM on their carbon productivity through GHG emissions reduction, with consideration given to the influence of environmental management systems (EMSs) as existing environmental initiatives. Our regression results using cross-sectional data on 139 Japanese manufacturing firms listed on the first section of the Tokyo Stock Exchange in 2011 suggest that although improved carbon productivity can only be achieved by firms implementing EMSs, those firms that also implement LCSCM could improve their carbon productivity further. It is also found that implementing LCSCM is not encouraged by EMSs, but rather by environmentally conscious interorganizational management control.

Appendix: Questionnaire for variables

Official requirements

Does your organization officially require its main suppliers to undertake activities related to environmental conservation and carbon emissions reduction? Please select all items that apply from the following list and tick appropriate boxes.
$\square$ CO$_{2}$ reduction	$\square$ Energy saving
$\square$ Provision of CO$_{2}$ emission information in Scopes 1 and 2	$\square$ Provision of CO$_{2}$ emission information in materials and parts

Monitoring

Please answer the following questions about your organization’s efforts to reduce carbon emissions in its supply chains. Please circle the appropriate number for each question.
	Strongly agree		Strongly disagree
1. Does your organization set clear CO$_{2}$ emissions reduction goals in its supply chains?	5	4	3	2	1
2. Does your organization select suppliers with consideration to their CO$_{2}$ emissions reduction?	5	4	3	2	1
3. Does your organization select suppliers who are prepared to cooperate in reducing CO$_{2}$ emissions in the supply chain?	5	4	3	2	1
4. Does your organization evaluate suppliers’ CO$_{2}$ emissions reduction using specific criteria?	5	4	3	2	1

Indirect support

Please answer the following questions about your organization’s efforts in cooperation with its main suppliers to reduce carbon emissions in its supply chains. Please circle the appropriate number for each question.
	Strongly agree		Strongly disagree
1. Does your organization hold study groups for CO$_{2}$ emissions reduction with its suppliers?	5	4	3	2	1
2. Does your organization hold informal gatherings for discussing CO$_{2}$ emissions reduction with its suppliers?	5	4	3	2	1
3. Does your organization regularly exchange opinions on CO$_{2}$ emissions reduction with its suppliers?	5	4	3	2	1
4. Does your organization transfer technology for CO$_{2}$ emissions reduction to its suppliers?	5	4	3	2	1
5. Does your organization provide finance for its suppliers to reduce CO$_{2}$ emissions?	5	4	3	2	1
6. Does your organization dispatch CO$_{2 }$ emissions reduction specialists to its suppliers?	5	4	3	2	1

Direct coordination

Please answer the following questions about your organization’s efforts in cooperation with its main suppliers to reduce carbon emissions in its supply chains. Please circle the appropriate number for each question.
	Strongly agree		Strongly disagree
1. Does your organization set common goals for CO$_{2}$ emissions reduction with its suppliers?	5	4	3	2	1
2. Does your organization have a mutual understanding relating to CO$_{2}$ emissions reduction with its suppliers?	5	4	3	2	1
3. Do your organization and suppliers cooperate in designing ways to reduce CO$_{2}$ emissions?	5	4	3	2	1
4. Do your organization and suppliers cooperate with secondary suppliers to reduce CO$_{2}$ emissions?	5	4	3	2	1

Environmental consciousness of purchasing division

Please answer the following questions about the departmental objectives in your organization’s purchasing division. Please circle the appropriate number for each question.
	Strongly agree		Strongly disagree
1. Is it important for your organization to purchase environmentally conscious products?	5	4	3	2	1
2. Is it important for your organization to reduce CO$_{2}$ emissions in materials and parts?	5	4	3	2	1
3. Is it important for your organization to reduce suppliers’ CO$_{2}$ emissions?	5	4	3	2	1

Recognition of environmental policy stringency

Please answer the following question(s) about the environment surrounding your organization regarding carbon emissions reduction. Please circle the appropriate number for each question.
	Strongly agree		Strongly disagree
1. Are the environmental regulations for the industry that your organization belongs to stricter than those for other industries?	5	4	3	2	1